Some mistakes are bigger than others in life. When a person is preparing to get divorced, he or she may feel that the marriage was a mistake and be caught up in the emotions of the moment. However, not paying attention to the details of assets that need to be divided during a divorce proceeding is another mistake that only exacerbates the situation in Oregon, as it can have a negative impact on one’s finances potentially for the rest of his or her life.
For instance, one spouse may have a pension that pays him or her a weekly amount for a certain number of years or for the rest of the individual’s life. This amount typically is adjusted each year in consideration of cost of living increases. A pension that is earned during a marriage is a marital asset and thus is subject to division by the court.
Thus, the spouse of the person who is getting a pension may also receive a percentage of the monthly payout. The amount will be decided during the family law proceeding. However, a major mistake that some divorcing individuals make is failing to address cost of living adjustments. Not doing so means that the beneficiary of the pension indeed will receive cost of living increases, but the spouse who is getting a percentage of the pension may not.
Being proactive about one’s finances during his or her retirement years is essential when confronting a divorce proceeding. Otherwise, a person can easily lose out on valuable money when he or she needs it the most. Understanding laws related to asset distribution can help a person to seek the best result for his or her financial future when going through the multifaceted process of divorce in Oregon.
Source: The Huffington Post, Three Costly Divorce Settlement Mistakes and How to Avoid Them, Christian Denmon, Jan. 21, 2014